In the figure above, the substitution effect outweighs the income effect in all segments EXCEPT

Marginal social cost is equal to ________

A) marginal private cost plus the marginal external cost B) the marginal external cost C) the value of the tax that will make the market efficient D) the marginal cost imposed on people other than the producer of the good

Give examples of factors that decrease short-run aggregate supply. Which way does the SAS curve shift?

What will be an ideal response?